01—Abstract
Summary
Summary of the 10-K filed March 18, 1997. Cited figures are marked; the original filing is the authoritative source.
First Citizens BancShares, Inc. (Nasdaq: FCNCA), the Raleigh, North Carolina-based holding company for First-Citizens Bank & Trust Company, filed its 10-K for fiscal year 1996 on March 18, 1997.
As of December 31, 1996, the company reported consolidated assets of $8.1 billiona, deposits of $7.0 billion, and shareholders' equity of $615.5 million. The Bank is the fifth-largest commercial bank in North Carolina by total deposits and operated 308 offices across North Carolina and Virginia, with two small West Virginia acquisitions (Bank of Marlinton and Bank of White Sulphur Springs) adding further footprint. Growth has come mainly from acquisitions and de novo branching under the Holding family's leadership.
The filing is largely a wrapper document. Most financial detail, including MD&A, financial statements, selected financial data, and stock and dividend tables, is incorporated by reference from the 1996 Annual Report to Shareholders (filed as Exhibit 13), so the key numbers investors need sit outside this main document. Management disclosed a quarterly cash dividend of $0.25b per share declared January 27, 1997, and stated an expectation that comparable dividends will continue, subject to earnings and capital needs.
Legal proceedings are routine, and management does not expect material effects on consolidated financial position. The filing also discusses the regulatory backdrop. The Interstate Banking Law permits interstate bank mergers beginning June 1, 1997, and North Carolina and West Virginia allow statewide branching, which increases competitive pressure in the company's markets.
Part III items are incorporated by reference to the March 14, 1997 proxy statement. Because the document does not include profitability metrics such as net income or return on equity, investors should review Exhibit 13 for those figures.
02—Key points
Key Highlights
- Total consolidated assets of $8.1 billion, deposits of $7.0 billion, and shareholders' equity of $615.5 million as of December 31, 1996
- Fifth-largest commercial bank in North Carolina by total deposits, with 308 offices across North Carolina and Virginia
- Growth driven principally by acquisitions and de novo branching under the R.P. Holding family's leadership
- Acquired Bank of Marlinton (Sept. 1994, ~$60M assets) and Bank of White Sulphur Springs (June 1995, ~$68.6M assets) in West Virginia
- Quarterly cash dividend of $0.25 per share declared January 27, 1997, with management expecting comparable dividends to continue
- Operates 212 owned locations and 194 leased locations (58 from affiliate Neuse, Inc., and 136 from third parties)
- Interstate Banking Law allows interstate bank mergers starting June 1, 1997, intensifying competition in statewide-branching states; 4,282 total employees
03—Questions
Frequently Asked Questions
How large is First Citizens BancShares and where does it operate?
As of December 31, 1996, the company had $8.1 billion in consolidated assets, $7.0 billion in deposits, and $615.5 million in shareholders' equity. Its lead subsidiary, First-Citizens Bank & Trust Company, ran 308 offices in North Carolina and Virginia and is the fifth-largest commercial bank in North Carolina by deposits.
Does the company pay dividends, and how much?
Yes. The Board declared a cash dividend of $0.25 per share on January 27, 1997, payable April 7, 1997, to holders of record on March 17, 1997. Management expects comparable dividends to continue, though payments remain at the Board's discretion and depend on earnings and projected capital needs.
What acquisitions has the company made recently?
BancShares acquired Bank of Marlinton (West Virginia, two offices, about $60 million in assets) on September 1, 1994, and Bank of White Sulphur Springs (West Virginia, two offices, about $68.6 million in assets) on June 1, 1995. Acquisitions and de novo branching have been the primary drivers of growth.
What regulatory or competitive changes could affect the business?
The Interstate Banking Law permits bank holding companies to acquire banks in any state, with interstate mergers allowed from June 1, 1997, subject to concentration, capital, and CRA requirements. North Carolina, West Virginia, and Virginia allow statewide branching, which makes commercial banking in these states highly competitive.
Are there material legal proceedings or risks disclosed in this filing?
The company and its banks are defendants in various routine lawsuits arising from normal business activities. Management believes that any ultimate liability will not have a material effect on consolidated financial position. Detailed profitability, credit quality, and financial statement information is incorporated by reference from the 1996 Annual Report (Exhibit 13) rather than included in this document.
04—Continue